Question : MULTIPLE CHOICE. Choose the one alternative that best completes the statement : 1196065

 

MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. 22)

The first step in the decision process should be 22)

______ A)

gathering information. B)

obtaining feedback on the decision. C)

choosing alternatives. D)

quantitative analysis. E)

making predictions.

23)

The feedback obtained in the five-step decision process can affect all of the following EXCEPT: 23)

______ A)

past performance. B)

implementation. C)

the prediction method. D)

the decision model. E)

future predictions.

24)

The Gameshop manufactures specialized board games. Management is attempting to search for ways to reduce costs and is considering two alternatives for an upcoming project of special games that must be delivered to the customer in 12 months time. Management agreed to the special project job as they have an idle plant that is scheduled for demolition 18 months from now, and either alternative will easily meet the delivery deadline.

Alternative 1 requires 10 machine operators and 2.5 individuals to handle direct materials.

Employee pay averages $17.50 per hour and will increase to $18.50 at the mid-point (July 1) of next year. Each employee currently works 2,500 hours but will decrease to 2,400 hours if Alternative 2 is implemented. The proposal only requires 8.5 workers.

Which of the following items of information are relevant to this decision? 24)

______ A)

property taxes for the idle plant B)

hourly wage rates C)

the number of employees required in each alternative D)

the delivery deadline E)

the timing of the wage increase

25)

Which of the following is FALSE concerning relevant costs and relevant revenues? 25)

______ A)

historical costs in themselves are irrelevant to a decision on future costs B)

nothing can be done to alter past costs or revenues C)

historical costs may be useful for predicting future costs D)

total differential costs include both relevant and irrelevant costs E)

every decision deals with the future

26)

Which of the following anticipated future costs always differ among alternative courses of actions? 26)

______ A)

relevant costs B)

direct labour costs C)

direct materials costs D)

indirect costs E)

historical costs

27)

The variation in total costs between two alternatives is known as 27)

______ A)

irrelevant cost. B)

expected cost. C)

analyzed cost. D)

differential cost. E)

predictable cost.

28)

Employee morale at Bedland, Inc. is very high. This type of information is known as 28)

______ A)

a nonmeasurable factor. B)

a quantitative factor. C)

a financial factor. D)

a numerical factor E)

a qualitative factor.

29)

Ted owns a small body shop. His major costs include labour, parts, and rent. In the decision making process, these costs are always considered to be 29)

______ A)

fixed. B)

relevant costs. C)

qualitative factors. D)

variable. E)

quantitative factors.

30)

Which of the following represent a qualitative factor? 30)

______ A)

historical costs B)

any nonfinancial factor C)

the timing of variable costs D)

relevant costs E)

an outcome that cannot be measured in numerical terms

 

 

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